Many of the qualifying conditions for Enterprise Investment Scheme (EIS) apply equally to the Seed Enterprise Investment Scheme (SEIS), but because this is aimed at much smaller start up companies there are some important differences as detailed below.
The qualifying company
- Trade must not be more than two years old, even if carried on by previous owners or within a different business entity e.g. a different company or self employment.
- Company must not have gross assets exceeding £200,000 and must have fewer than 25 employees.
- Maximum amount that can be raised under SEIS is £150,000.
- Funds raised must be used within 3 years of the investment.
The qualifying investor
- Income tax relief for the qualifying investor is at higher rate of 50%.
- Maximum investment of £100,000 in any one tax year.